The Chancellor’s schedule and expected measures

The government is preparing for one of the most closely watched Budget announcements in years, with Rachel Reeves set to present her plans to Parliament this afternoon. The timing of the statement follows the usual format, beginning shortly after Prime Minister’s Questions, with ministers signalling that this year’s edition will be defined by the need to repair public finances while setting out a long-term strategy for growth. The Office for Budget Responsibility is expected to publish its updated forecasts alongside the speech.

The Chancellor’s address is scheduled for early afternoon, with key economic documents released immediately after she concludes. These publications will detail the assumptions behind the government’s projections on inflation, borrowing and debt. They are also expected to confirm the scope of the fiscal headroom available for the coming years, which has been a focal point of political discussion. Observers will be watching closely to see how much flexibility Reeves will have as she attempts to balance competing demands.

Among the central measures likely to be confirmed is the continuation of the income-tax threshold freeze. This policy, in place since before the election, has been repeatedly highlighted as a major factor affecting household finances. Treasury officials believe it provides stability for revenue planning, though many workers will find themselves paying more tax as wages rise. The Chancellor is expected to frame this as a necessary contribution to long-term fiscal sustainability.

Property taxation is another significant area under review. New charges for homes valued above £2 million are expected to form part of the Budget, signalling the government’s intention to shift a greater share of the burden onto wealthier homeowners. This move follows months of internal analysis on property valuations and regional disparities. Ministers insist that the reforms will be designed to protect the vast majority of households while ensuring a fairer distribution of contributions.

Transport and environmental policy may also feature, with a mileage-based system for electric vehicles under discussion. Although not yet confirmed, officials have been exploring how to replace declining fuel-duty revenues as drivers transition to cleaner alternatives. Any announcement would mark a major shift in how road use is taxed. The Budget may outline the first steps towards a nationwide framework that aligns with the government’s wider net-zero commitments.

Support for families is expected to be highlighted, particularly through changes to the two-child benefit cap. Ministers have indicated that the policy is under review, with an expansion of support likely to be revealed. This comes amid broader efforts to address child poverty and improve household resilience during a period of high living costs. Additional measures may target working parents and low-income earners as part of a wider social policy package.

Savings and investment are also under the spotlight. Adjustments to ISAs, dividend taxation and pension arrangements have been widely discussed in recent days. These changes are intended to close gaps in the tax system and raise additional revenue, but they may have implications for those relying on investment income. The government argues that the approach is part of a fair and proportionate restructuring of the tax base.

Public-service funding will play a central role in the statement. Reeves is expected to reaffirm commitments to the NHS and education while emphasising the importance of value for money. Departments have been instructed to prioritise essential services and demonstrate the impact of spending decisions. The Budget will provide a clearer picture of how future investment will be balanced against tight fiscal constraints.

Market reaction is likely to follow swiftly after the announcement. Financial analysts will examine the projections for borrowing, growth and inflation, assessing whether the government’s plans are credible and sustainable. The response of gilt markets and the value of sterling will offer early indicators of investor confidence. The government will be keen to demonstrate that its strategy commands support both domestically and internationally.

Political debate will intensify once the full details are released. Supporters of the government argue that the package represents a responsible path towards stability after years of economic turbulence. Critics, however, warn that the combination of tax rises and spending restraint could weigh on household budgets and slow the recovery. Parliament will scrutinise each measure in the days ahead as the Finance Bill moves forward.

For households, the impact of the Budget will become clearer as analysis continues throughout the day. Families, savers and businesses will be seeking to understand how the changes apply to them, while economists evaluate the broader implications for growth and living standards. With expectations high and fiscal pressures mounting, Reeves’s announcement is set to shape the economic outlook for years to come.